Cheque Bounce: Nowadays, although the trend of digital payment through UPI has increased, still the use of cheques has not ended in many places. But sometimes due to some reasons, the cheque gets bounced. Cheque bouncing means that the money that was to be received from that cheque could not be received. In such a case, the bank charges a penalty. Sometimes such cases even reach the court. Recently, two cases of cheque bounce have come up in Mangaluru, in which the court has imposed a fine on two people, if they do not pay the fine, they will have to undergo jail sentence. Know what is the whole matter and when such a situation arises.
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What is the first case
In the first case, the local court of Mangaluru has imposed a fine of Rs 3,03,000 on Naveen Acharya, owner of Brahmavar’s ‘V-5 Tech Engineering Works’ and a resident of Mangaluru. Naveen had issued a cheque after purchasing sports equipment from Prime Sports Company here. But this cheque bounced. The court has said that if the fine is not paid, the culprit will have to undergo a sentence of 3 months.
This is the second case
In another case, the court has imposed a fine of Rs 1,02,000 on a person named Nizamuddin in a cheque bounce case. In this case, Pawan Kumar of Charmadi village had filed a complaint of cheque bounce. The court has said that if he does not pay the fine, he will have to undergo six months imprisonment.
Know the reasons why a cheque gets bounced
There can be many reasons for a cheque bouncing. These include no or less balance in the account, mismatch of signature, mistake in writing words, mistake in account number, overwriting, expiry of the cheque, closure of the account of the person who issued the cheque, suspicion of a fake cheque, absence of company seal on the cheque, etc.
Banks charge penalty on cheque bounce
Banks charge a penalty when a cheque bounces. The penalty has to be paid by the person who issued the cheque. This penalty can vary according to the reasons. Every bank has fixed a different amount for this.
Cheque bounce is considered a crime
In India, bouncing of a cheque is considered a crime. According to section 138 of the Negotiable Instrument Act 1881, bouncing of a cheque is a punishable offence and apart from this, there is a provision of two years imprisonment and fine or both. However, this happens only in the situation when there is not enough balance in the account of the person giving the cheque and the bank dishonours the cheque.
When does a case come up
It is not so, as soon as the cheque is dishonoured, a case is filed against the payer. When the cheque bounces, the bank first gives a receipt to the creditor, which tells the reason for the cheque bouncing. After this, the creditor can send a notice to the debtor within 30 days. If there is no response from the debtor within 15 days of the notice, then the creditor can go to court. The creditor can file a complaint in the magistrate’s court within one month. Even after this, if he does not get the money from the debtor, he can file a case against him. If found guilty, a jail term of up to 2 years or a fine or both can be imposed.
